Q: What are the obligations of the Licensors with regard to their essential AVC Essential patents? A: Each Licensor is under an obligation to grant to MPEG LA a worldwide, nonexclusive license under all AVC Essential Patents that it has the right to license or sublicense without payment to any third party, allowing MPEG LA to grant worldwide, nonexclusive sublicenses under such patents under terms of the AVC Patent Portfolio License.

Q: What is the effect on Licensees when new patents are added to the AVC Patent Portfolio License? A: New Licensors and new patents are added at no additional cost during the current Term of the License. Licensees enjoy coverage under all patents from the effective date (August 1, 2002) forward.

Q: Are all AVC essential patents included? A: No assurance is or can be made that the License includes every essential patent. The purpose of the License is to offer a convenient licensing alternative to everyone on the same terms and to include as much essential intellectual property as possible for their convenience. Participation in the License is voluntary on the part of essential patent holders, however.

Q: How may a patent holder become a Licensor to the AVC Patent Portfolio License?A: Any party that believes it has patents which are essential to the AVC Standard, and wishes to participate in the AVC Patent Portfolio License upon successful evaluation, is invited to submit them for evaluation and inclusion. Click here to request a copy of the terms and procedures governing the patent submission process.

Q: How many licenses does an AVC user need? A: It is up to each user to determine its own licensing needs and how it wishes to meet them. The AVC Patent Portfolio License is provided for a user’s convenience in acquiring patent rights necessary for the AVC Standard from multiple essential patent holders in a single transaction rather than electing its option to negotiate separate license agreements with individual essential patent holders. But, users have the right to separately negotiate a license with any and all of the essential patent holders under any and all of the essential patents under terms to be independently negotiated by each. In addition, as discussed above, users who take MPEG LA’s license may have to negotiate licenses for essential patents that are not included. A license also may be necessary for other important patents (which are not essential to the AVC standard) that may be used.

Q: What are the royalties for the AVC Patent Portfolio License? A: Click here for information.

Q: Do the same licensing terms apply to all profiles of the AVC/H.264 Standard?A: Yes, the same terms apply whether one or more profiles is used.

Q: Is there a limitation on the amount that royalty rates may increase at each renewal?A: If royalty rates were to increase, they will not increase by more than 10% at each renewal for specific license grants.*